Woolworths Prepares For Fight Against Amazon

Woolworths has revealed it plans to continue to leverage data collected through its Rewards program in the lead up to Amazon’s Australian launch next year.

The supermarket argues that personalisation will be a key component in the fight against Amazon.

In 2013, Woolworths pumped $20 million into data analytics firm Quantium Group for a 50% share, and also launched a new data push simultaneously with the revamp of its Rewards program in August last year.

As a result, the supermarket now says it is well poised to tap into the extensive data gathered from a claimed 9.7 million member base to deliver communications targeted specifically at individuals and their families.

In a report by The Sydney Morning Herald, Woolworths director of loyalty and customer data Ingrid Maes claimed its investment into personalised communications had paid off within three months.

“Our core priority is to be focused on our customers and when our focus is on them … you automatically protect yourself against any new entrant,” Maes told The Sydney Morning Herald.

“Australians are increasingly frustrated with excessive amount of un-targeted and low valued communication… If you have a program that can cut through that, by default you will end up with a program that customers value.”

Maes recognised that Amazon has been a major player in personalisation internationally. Coles also targets its customers with personalisation through the flybuys program, which claims a membership of over 5.5 million.